New York Laws
Title 2 - General Provisions Relating to Municipal Assistance Corporations
3020 - Actions Against a Municipal Assistance Corporation; Indemnification.

§ 3020. Actions against a municipal assistance corporation;
indemnification. 1. Except in an action for wrongful death, an action
against a municipal assistance corporation for personal injury or
property damage or founded on tort shall not be commenced more than one
year and ninety days after the cause of action shall have accrued nor
unless a notice of claim shall have been served on a director of such
corporation, or an officer or employee thereof designated by the
corporation for such purpose, within the time limited by, and in
compliance with the requirements of section fifty-e of the general
municipal law. An action against a municipal assistance corporation for
wrongful death shall be commenced in accordance with the notice of claim
and time limitation provisions of title eleven of article nine of this
chapter.

2. The venue of every action, suit or special proceeding brought
against a corporation shall be laid in the county in which the principal
office of such corporation is located.

3. a. The state shall save harmless and indemnify directors, officers
and employees of and representatives to a corporation, all of whom shall
be deemed officers and employees of the state for purposes of section
seventeen of the public officers law, against any claim, demand, suit,
or judgment arising by reason of any act or omission to act by such
director, officer, employee or representative occurring in the discharge
of his duties and within the scope of his service on behalf of such
corporation, including any claim, demand, suit or judgment based on
allegations that financial loss was sustained by any person in
connection with the acquisition, disposition or holding of securities or
other obligations of a corporation (or those of any other public
corporation if such loss allegedly resulted from its dealing with a
municipal assistance corporation). In the event of any such claim,
demand, suit or judgment, a director, officer or employee of or
representative to a municipal assistance corporation shall be saved
harmless and indemnified, notwithstanding the limitations of section
seventeen of the public officers law, unless such individual is found by
a final judicial determination not to have acted, in good faith, for a
purpose which he reasonably believed to be in the best interest of such
corporation or not to have had reasonable cause to believe that his
conduct was lawful.

b. In connection with any such claim, demand, suit, or judgment, any
director, officer or employee of or representative to the corporation
shall be entitled to representation by private counsel of his choice in
any civil judicial proceeding whenever the attorney general determines
based upon his investigation and review of the facts and circumstances
of the case that representation by the attorney general would be
inappropriate. The attorney general shall notify the individual in
writing of such determination that the individual is entitled to be
represented by private counsel. The attorney general may require, as a
condition to payment of the fees and expenses of such representation,
that appropriate groups of such individuals be represented by the same
counsel. If the individual or group of individuals is entitled to
representation by private counsel under the provisions of this section,
the attorney general shall so certify to the comptroller. Reasonable
attorney's fees and litigation expenses shall be paid by the state to
such private counsel from time to time during the pendency of the civil
action or proceeding subject to certification that the individual is
entitled to representation under the terms and conditions of this
section by the chairman of the board of directors of the corporation
upon the audit and warrant of the comptroller. The provisions of this
subdivision shall be in addition to and shall not supplant any

indemnification or other benefits heretofore or hereafter conferred upon
directors, officers or employees of and representatives to the
corporation by section seventeen of the public officers law, by action
of the corporation, or otherwise. The provisions of this subdivision
shall inure only to directors, officers and employees of and
representatives to the corporation, shall not enlarge or diminish the
rights of any other party, and shall not impair, limit or modify the
rights and obligations of any insurer under any policy of insurance.